Real Estate Math

A Virginia property tax bill is $3,600 per year. Closing occurs on October 1. The seller has not yet paid the current year's taxes. Using a 360-day year, what is the seller's tax proration at closing?

A$2,400
B$2,700✓ Correct
C$3,000
D$2,250

Explanation

Daily rate = $3,600 ÷ 360 = $10/day. Jan 1 to Oct 1 = 9 months = 270 days.

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